Citigroup profits decline as Covid-19 takes its toll
Citigroup posted a steep decline in first-quarter profits on Wednesday as the US bank prepared for the hit from Covid-19 by stacking up its loan-loss reverses.
Citigroup Inc.
$62.66
11:04 26/04/24
While revenues were up 12% year-on-year at $20.7bn thanks to higher levels of fixed-income and equity trading, earnings per share of $1.05 came in well and truly short of the $1.87 expected on the Street.
Income and equity trading revenues were both up 39% at $4.8bn and $1.2bn, respectively.
However, net income crashed 46% to $2.52bn as the deteriorating economic outlook and a transition to the new Current Expected Credit Loss standard caused Citi to build significant loan-loss reserves.
Consumer banking posted a net loss of $754m, a marked turnaround from the $1.3bn income recorded in the prior year.
As of 1500 BST, Citigroup shares were down 4.38% at $43.43 each.